Canadian Legislative News

Here is a brief look back at the key legislation and policies that have impacted the fleet, mobility, and automotive industries in 2018.

From environmental and transportation policies to the intense NAFTA renegotiations, 2018 has been a roller coaster ride but also a good year for the auto industry and fleet managers. A year away from the election, the federal government has been moving on big-ticket items such as carbon pricing, cannabis legalization, climate change plan, trade issues, and transport safety regulations.

USMCA Replaces NAFTA

NAFTA negotiations concluded with a new agreement signed by the United States, Mexico, and Canada. USMCA promises to modernize the previous 20-year-old trilateral deal, bringing resolution to most of the trade tensions between Canada and the U.S. The agreement takes steps to restore cross-border confidence which economists have suggested had been impacted by the negotiations. For fleet managers, this is also great news, as the deal alleviates the threat of auto tariffs. The hope is that the steel and aluminum tariffs issue will be resolved promptly and business will resume as usual.

Carbon Pricing

Tensions remain high between the provinces and the federal government regarding a carbon pricing system in Canada. Ontario and Alberta have pulled out of the national framework on climate change.

Saskatchewan, Manitoba, and New Brunswick continue to be strongly opposed to the federal government imposing a pollution pricing system on their provinces. Despite the opposition, the federal government is set to have a carbon pricing system in place for provinces that do not have their own system yet. The government will also be bypassing the provinces, providing direct rebates to residents to offset the cost of a carbon tax. Ontario is joining Saskatchewan in a court battle with the federal government over its authority to set a minimum national carbon pricing system. It is unclear how the carbon pricing issue will unfold in the new year. One thing is certain: the federal government is not backing down and a price on carbon could become an election issue. Other regulations to encourage clean energy and reduce emissions have been announced. These include fuel efficiency standards, zero-emission vehicle policies and incentives, and a clean fuel standard.

Cannabis Legalized

Cannabis has been legalized in Canada, but a lot remains unclear especially with the issues around illegal dispensaries establishing themselves in cities across the country, roadside impairment testing, and workplace impairment. While the government is bound to make billions in tax revenue off the legalization of the substance, the hope of employers and drivers is that safety continues to be ensured on our roads and workplaces.

Autonomous Vehicles and Safety Regulations

The federal government is in the process of developing some very important policies in the transportation sector. Earlier in 2018, Transport Canada released its Transportation 2030 strategy which included funding for the creation of regulations, certification, standards, and testing of automated vehicles. Now that automated and connected vehicles are here, could driverless cars solve the vexing and deteriorating problem of urban congestion? No one is certain of what the future will bring, but we do know that governments will have to walk a fine line between spurring innovation in the autonomous vehicle sector and ensuring safety and employment transition for those directly impacted in the years and decades to come. Fleet managers will need to adapt to the rising technology of automated vehicles and adapt their own policies accordingly.

Furthermore, the government passed Bill S-2, an act to amend the Vehicle Motor Safety Act to give the Transport Minister more powers including the ability to order auto manufacturers to correct a defect or non-compliance in a vehicle. Other policies included mandatory seat belts for highway buses and new regulations for heavy- and medium-duty vehicles.

The government is taking the steps to increase safety on our roads and tackle emissions, but these policies have to take fleet operators into account, and they have to be designed by officials with the full knowledge that four in five new car sales go to the consumer, but the other 20 percent are fleet-destined vehicles. Fleets have different regulatory and operational requirements than consumer vehicles, and must be incorporated into policies.

NAFA has worked in 2018 to engage with government officials on these highly relevant issues for our industry. While governments attempt to adapt to today’s changing transportation landscape, the will of fleet managers must continue to be heard.